Small Business Investor Tax Parity Act of 2025

This bill would change the federal tax code so that certain dividends paid by business development companies (BDCs) can qualify for the section 199A qualified business income deduction, the same way qualified REIT dividends already do. It defines a "qualified BDC interest dividend" as a dividend from a BDC that has elected to be treated as a regulated investment company, to the extent the dividend comes from the company's net interest income tied to a qualified trade or business. The change would apply to taxable years beginning after December 31, 2026.

Full text and official record on Congress.gov

Sponsors

• Jim Banks Republican sponsor
• 3 cosponsors